Business
Review of Operations
Review of Operations.
About this update from Tooru Plc
[{"type":"text","content":"\n Caldwell Investments PLC\n02 February 2007\n\n\n\nCaldwell Investments reviews current operations and investigates bio-diesel\nfeedstock project\n\n\nThe board of Caldwell Investments ('Caldwell' or 'the Company') announces that\nit has carried out a review of its current operations and is investigating the\nfeasibility of a biodiesel feedstock project in Brazil.\n\nCaldwell's underwear business has been subject to growing margin pressure.\nRetailers are increasingly moving to direct sourcing and the board expects this\nwill continue to impact turnover in the future. As a result, the board is\nplanning to reduce its underwear business in Germany with a view to withdrawing\nfrom distribution before the lease on the Company's German warehouse premises\nfall due for renewal in December 2008. It is anticipated that Caldwell will\ncontinue to source product for certain of its German customers on an agency\nbasis, removing the requirement to maintain a storage and distribution centre.\nThe Company will continue to distribute underwear in the UK and is experiencing\nincreasing orders in this market in the current financial year.\n\nThe Company's baby buggy parasol business, 'NinaClip', is experiencing a reduced\nvolume of orders which the board believes is due primarily to a change in the\ndesign of baby buggies which now incorporate integral hoods removing the\nrequirement for a separate parasol. It is the board's intention to continue to\nsupply this market, although an ongoing reduction in demand is expected and the\noperation will therefore be scaled accordingly.\n\nThe Company's garden furniture and sun canopy business, 'NinaSun' is also under\nreview and the board is considering a number of options for this operation,\nincluding franchising.\n\nIn consideration of the anticipated changes in its operations, the board has\nalso taken the decision to dispose of the Company's premises at Skelmersdale,\nwhich is expected to realise a cash gain in excess of £100,000.\n\nIn view of the above anticipated changes in its existing businesses, the board\nhas been actively investigating a new area of operation for Caldwell and has\nidentified bio-diesel as a rapidly growing market. The board believes this is a\nmarket whose growth will continue to be driven by legislation and the\nenvironmental lobby and one where there is substantial pot...